B&G Foods, Parsippany, N.J., earlier rumored to be buying General Mills' Green Giant brand, has made it official, and will buy the iconic vegetable business for $765 million. The deal also includes General Mills' Le Sueur vegetable business. Under license from B&G, General Mills, Minneapolis, will manage the European Green Giant business and additional export locations.
The purchase is B&G's first in the frozen food category. B&G owns the Cream of Wheat, Mrs. Dash, Ortega and Pirate’s Booty brands. Green Giant has a reported $550 million in yearly sales, which will make B&G a $1.4-billion firm. Pending regulatory approval, the deal should be official by the end of 2015.
B&G expects the acquisition to immediately add to earnings, it said in a statement. “We are thrilled to welcome Green Giant and Le Suer to the B&G Foods family of brands," notes Robert C. Cantwell, B&G Foods president and CEO. "For over 100 years, Green Giant and Le Sueur have been providing consumers with great tasting, nutritious vegetables picked at the peak of perfection. We look forward to building on that rich history by offering new and innovative products that will respond to the needs of today’s health conscious consumer.”
The Green Giant and Le Sueur businesses included in the transaction generated net sales of about $585 million in fiscal year 2015. The sale allows General Mills to focus efforts on its brands, categories and geographic markets with the most growth potential. and reshape its portfolio on future growth opportunities. General Mills posted sales of $18.7 billion in fiscal year 2015.